My Digit reported that Essar Steel is likely to return to profits by 2013-14 banking on full capacity utilization of its 10 million tonnes per annum steel making operations at Hazira.
A senior company official said that"We are focusing on value added and high end products to make the company profitable.At the moment the company is profitable at the operating level and we will be PAT positive by 2013-14 once the production of 10 million tonnes is fully operational."
Official said that"Demand from sectors like hydro carbon,auto and engineering are likely to drive growth of the company."
Essar Steel had expanded its steel making capacity from 4.6 million tonnes per annum to 10 million tonnes at the beginning of the ongoing financial year in Hazira.But the actual capacity utilization is rising slowly.
It has also commissioned a pellet facility of 6 million tonnes per annum at Paradeep to feed the steel making facility.The second phase of the pellet plant is scheduled to be completed next year and will allow conversion of low grade iron ore into pellets,which can be used to make steel in its plants.
